HKEx acquired the London Metal Exchange in the summer of 2012. [2] HKEx agreed in June to pay 1.39 billion British pounds ($2.15 billion) for the exchange, outbidding Intercontinental Exchange.[3] The transaction was the exchange's first overseas acquisition and gave the exchange its first commodities contracts.

The exchange posted volume of 480 million contracts in 2018, up 29 percent from the previous year, according to the FIA Annual Volume Survey.[4]

The stock exchange traces its roots to the Association of Stockbrokers in Hong Kong, established in 1891 and re-named the Hong Kong Stock Exchange (HKSE) in 1914. A second exchange, the Hong Kong Stockbrokers' Association was incorporated in 1921 and merged into the HKSE in 1947. Three more bourses followed - the Far East Exchange in 1969; the Kam Ngan Stock Exchange in 1971; and the Kowloon Stock Exchange in 1972 – which were later merged with the HKSE to form the Stock Exchange of Hong Kong Limited, which started operations on March 27, 1986.

The Hong Kong Futures Exchange was established in December 1976 as the Hong Kong Commodities Exchange, changing its name in 1985. The exchange initially traded Hang Seng Index futures using open outcry, with clearing and settlement from the wholly-owned HKFR Clearing Corporation. Options were added in 1993, with automated trading launched in November 1995. The trading floor was closed in 1999.[6]

The Hong Kong Securities Clearing Company Limited was incorporated in 1989 and started operations in 1992. The HKEx listing was underwritten by HSBC, Merrill Lynch and Morgan Stanley.

HKEx announced the launch of its commodities business on April 22, 2014. Pending regulatory approval and market readiness, four renminbi-denominated futures contracts (London Aluminium Mini Futures, London Zinc Mini Futures, London Copper Mini Futures and API 8 Thermal Coal Futures) will be traded on its derivatives market in Hong Kong.[7] The contracts will be cash settled, which will avoid tax barriers and make it easier to moving metals in and out of the mainland.[8]

On November 17, 2014, China launched a program called the Shanghai-Hong Kong Stock Connect, connecting HKEx with the Shanghai Stock Exchange, offering investors in Hong Kong and the Chinese mainland unprecedented access to markets across the border. The program allows investors in Hong Kong to trade eligible shares in Shanghai, and vice versa.[9][10]

In June of 2015 HKEx said it would introduce new volatility controls to help avoid a market collapse in an atmosphere of wild price swings in Chinese stocks. The measures, which include a closing auction as well as other volatility curbs, would bring the exchange in line with other international exchanges in New York and Europe. The phased implementation is planned to begin in mid-2016.[11]

HKEx's offshore renminbi/dollar currency futures contract, launched in September 2012, has seen steady growth, with a record high of more than 3,700 contracts traded in February of 2016.

In April of 2016 HKEx said it planned to launch renminbi currency futures contracts against the Indonesian rupiah and the Malaysian ringgit in the coming months as part of the exchange's push to diversify its revenue streams away from its traditional equity trading business because of weak stock markets. The exchange also plans to launch a gold settled contract in the third quarter of 2016.[12]

The exchange closed its trading floor on October 27, 2017 and became all-electronic.[13]

HKEX launched its first ferrous product, iron ore futures, on November 13, 2017. The futures, which are cash-settled TSI Iron Ore Fines 62 percent FE CFR China Futures, traded a total volume of 1,022 contract in their first day trading session, among 11 exchange participants. HKEX waived the exchange fee for the first six months of trading.[14]

HKEX acquired Shenzhen-based Ronghui Tongjin Technology in July 2019. The exchange took a 51 percent stake in the financial technology company. The deal, which makes Ronghui Tongjin a subsidiary of HKEX, is part of a broader strategy to "develop strong alliances with technology partners," according to HKEX Chief Executive Charles Li.[15]

In September 2019, HKEX made an offer for the London Stock Exchange Group for $36.6 billion. The proposed deal would offer 2,045 pence plus 2.495 HKEX shares per LSE share. That would value each LSE share at 8,361 pence. The deal, if approved, would end the LSE's bid for Refinitiv. The LSE board unanimously rejected the offer citing "fundamental flaws." HKEX dropped its bid in October 2019, after failing to secure support from LSE shareholders. Several factors in the failed overture included the LSE's view that Shanghai, not Hong Kong will the be the long-term financial capital of China, concerns over a Chinese exchange having ownership of the UK's flagship stock exchange group, and worries over social unrest in Hong Kong that has damaged the territory's reputation.[16][17][18][19]

2012 Acquisition of London Metal Exchange

On July 25, 2012, London Metal Exchange shareholders approved a $2.2 billion takeover offer from Hong Kong Exchanges & Clearing Ltd. The vote was more than 99 percent in favor of the deal, according to an LME spokesman. HKEx's proposal won out over offers from its rivals CME Group, Intercontinental Exchange and NYSE Euronext. Sixty-seven stockholders controlling 12.86 million shares voted on the transaction, with 64 owners holding 12.82 million shares backing the bid. In a separate tally at an extraordinary general meeting, 12.75 million shares, or 99.24 percent, were voted for the sale and 98,000 against. [20]

LME will continue to be based in London and to be regulated by the FSA. According to HKEx, the deal will help grow the number of clients in China and will help disperse LME data across Asia. In addition, HKEx said it would "keep the LME’s existing warehousing network, help the bourse develop its own clearing house and freeze trading fees until at least the start of 2015." [21]

In May of 2013, HKEx announced plans to introduce new stock index futures and stock futures on three A-share Exchange Traded Funds (ETFs) as part of its continuing efforts to expand its suite of Mainland China-related products. The exchange said it would introduce CES China 120 Index futures on Monday, 8 July 2013, subject to regulatory approval.[22]

On November 17, 2014, HKEx launched the Shanghai-Hong Kong Stock Connect linkage, which linked Hong Kong with mainland China by adopting a share trading system with the Shanghai Stock Exchange.[23][24]

HKEX said on September 19, 2019 that it would launch Indian Rupee (INR) Currency Futures in the fourth quarter of the year. HKEX plans to introduce two new futures contracts: the INR vs US Dollar (INR/USD) Futures; and the INR vs Renminbi traded in Hong Kong (INR/CNH) Futures. The INR/CNH Futures contracts will be the first of their kind globally, and are a part of HKEX's strategy to bolster Hong Kong’s role as the region’s FX and fixed-income trading hub.[25]

Trading Hours

Trading hours are from 9:45 a.m.-12:30 p.m. and 2:30 p.m.-4:15 p.m.

HKEx announced on Feb. 14, 2013 that it received regulatory approval to offer After-Hours Futures Trading (AHFT). The exchange introduced AHFT on Monday, April 8, 2013. The move was designed to enable market participants to hedge or adjust their positions in response to market news and events during the European and US business days, according to HKEx.[26]